HB957 - Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan.

      By: Toth H.B. No. 957       A BILL TO BE ENTITLED   AN ACT   relating to requirements for the physical presence of a borrower   for signing certain documents related to a home equity loan.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 343.002(b), Finance Code, is amended to   read as follows:          (b)   Except as provided by Subchapter D, this [ This ] chapter   does not apply to:                (1)  a reverse mortgage; or                (2)  an open-end account, as defined by Section   301.002.          SECTION 2.  Chapter 343, Finance Code, is amended by adding   Subchapter D to read as follows:   SUBCHAPTER D. HOME EQUITY LOANS           Sec.   343.301.     DEFINITION. In this subchapter, "home equity   loan" means an extension of credit described by Section 50(a)(6),   Article XVI, Texas Constitution.           Sec.   343.302.     PHYSICAL PRESENCE OF CERTAIN BORROWERS AT   CLOSING NOT REQUIRED. (a) This section applies to the closing of a   home equity loan by a borrower who:                 (1)     is located outside of this state at the time of the   closing and is:                       (A)     a member of the armed forces of the United   States who is on active duty;                       (B)     an officer of the Commissioned Corps of the   United States Public Health Service who is on active duty;                       (C)     a member of reserve components of the armed   forces of the United States not described by Paragraph (A) who is on   active duty;                       (D)     the spouse or surviving spouse of a person   described by Paragraph (A), (B), or (C); or                       (E)     a civilian employee of the federal government   employed by, serving with, or accompanying the armed forces of the   United States, if assigned to a foreign country or a vessel or unit   of the armed forces of the United States;                 (2)     has a disability that prohibits travel or is   quarantined to protect the borrower's health or the health of   others, as verified by a written letter from a physician; or                 (3)     is unable to travel to the closing because the   borrower is incarcerated or under house arrest.           (b)     In lieu of closing a home equity loan in person at the   office of the lender, an attorney, or a title company, a borrower   described by Subsection (a) may close the loan:                 (1)     from a remote location using remote online   notarization; or                 (2)  through an agent who:                       (A)     is acting under a durable power of attorney   that expressly grants the agent the authority to engage in a home   equity loan transaction on behalf of the borrower, regardless of   where the borrower signed the power of attorney; and                       (B)     appears in person for the closing at the   office of the lender, attorney, or title company on behalf of the   borrower.          SECTION 3.  Section 751.203(b), Estates Code, is amended to   read as follows:          (b)  A certification described by Subsection (a) may be in   the following form:   CERTIFICATION OF DURABLE POWER OF ATTORNEY BY AGENT          I, ___________ (agent), certify under penalty of perjury   that:          1.  I am the agent named in the power of attorney validly   executed by ___________ (principal) ("principal") on ____________   (date), and the power of attorney is now in full force and effect.          2.  The principal is not deceased and is presently domiciled   in ___________ (city and state/territory or foreign country).          3.  To the best of my knowledge after diligent search and   inquiry:                a.  The power of attorney has not been revoked by the   principal or suspended or terminated by the occurrence of any   event, whether or not referenced in the power of attorney;                b.  At the time the power of attorney was executed, the   principal was mentally competent to transact legal matters and was   not acting under the undue influence of any other person;                c.  A permanent guardian of the estate of the principal   has not qualified to serve in that capacity;                d.  My powers under the power of attorney have not been   suspended by a court in a temporary guardianship or other   proceeding;                e.  If I am (or was) the principal's spouse, my marriage   to the principal has not been dissolved by court decree of divorce   or annulment or declared void by a court, or the power of attorney   provides specifically that my appointment as the agent for the   principal does not terminate if my marriage to the principal has   been dissolved by court decree of divorce or annulment or declared   void by a court;                f.  No proceeding has been commenced for a temporary or   permanent guardianship of the person or estate, or both, of the   principal; and                g.  The exercise of my authority is not prohibited by   another agreement or instrument.          4.  If under its terms the power of attorney becomes   effective on the disability or incapacity of the principal or at a   future time or on the occurrence of a contingency, the principal now   has a disability or is incapacitated or the specified future time or   contingency has occurred.          5.  I am acting within the scope of my authority under the   power of attorney, and my authority has not been altered or   terminated.          6.  If applicable, I am the successor to ___________   (predecessor agent), who has resigned, died, or become   incapacitated, is not qualified to serve or has declined to serve as   agent, or is otherwise unable to act. There are no unsatisfied   conditions remaining under the power of attorney that preclude my   acting as successor agent.          7.  I agree not to:                a.  Exercise any powers granted by the power of   attorney if I attain knowledge that the power of attorney has been   revoked, suspended, or terminated; or                b.  Exercise any specific powers that have been   revoked, suspended, or terminated.          8.  A true and correct copy of the power of attorney is   attached to this document.          9.  If applicable and if used in connection with an extension   of credit under Section 50(a)(6), Article XVI, Texas Constitution,   the power of attorney was executed in the office of the lender, the   office of a title company, or the law office of   ____________________.   Date: __________, 20__.          __________________________________ (signature of agent)          SECTION 4.  Section 752.051, Estates Code, is amended to   read as follows:          Sec. 752.051.  FORM. The following form is known as a   "statutory durable power of attorney":   STATUTORY DURABLE POWER OF ATTORNEY   NOTICE: THE POWERS GRANTED BY THIS DOCUMENT ARE BROAD AND SWEEPING.   THEY ARE EXPLAINED IN THE DURABLE POWER OF ATTORNEY ACT, SUBTITLE P,   TITLE 2, ESTATES CODE. IF YOU HAVE ANY QUESTIONS ABOUT THESE POWERS,   OBTAIN COMPETENT LEGAL ADVICE. THIS DOCUMENT DOES NOT AUTHORIZE   ANYONE TO MAKE MEDICAL AND OTHER HEALTH-CARE DECISIONS FOR YOU. YOU   MAY REVOKE THIS POWER OF ATTORNEY IF YOU LATER WISH TO DO SO. IF YOU   WANT YOUR AGENT TO HAVE THE AUTHORITY TO SIGN HOME EQUITY LOAN   DOCUMENTS ON YOUR BEHALF, THIS POWER OF ATTORNEY MUST BE SIGNED BY   YOU AT THE OFFICE OF THE LENDER, AN ATTORNEY AT LAW, OR A TITLE   COMPANY , UNLESS YOU QUALIFY FOR AN EXCEPTION UNDER SECTION 343.302,   FINANCE CODE .          You should select someone you trust to serve as your agent.     Unless you specify otherwise, generally the agent's authority will   continue until:                (1)  you die or revoke the power of attorney;                (2)  your agent resigns, is removed by court order, or   is unable to act for you; or                (3)  a guardian is appointed for your estate.          I, __________ (insert your name and address), appoint   __________ (insert the name and address of the person appointed) as   my agent to act for me in any lawful way with respect to all of the   following powers that I have initialed below. (YOU MAY APPOINT   CO-AGENTS. UNLESS YOU PROVIDE OTHERWISE, CO-AGENTS MAY ACT   INDEPENDENTLY.)          TO GRANT ALL OF THE FOLLOWING POWERS, INITIAL THE LINE IN   FRONT OF (O) AND IGNORE THE LINES IN FRONT OF THE OTHER POWERS   LISTED IN (A) THROUGH (N).          TO GRANT A POWER, YOU MUST INITIAL THE LINE IN FRONT OF THE   POWER YOU ARE GRANTING.          TO WITHHOLD A POWER, DO NOT INITIAL THE LINE IN FRONT OF THE   POWER. YOU MAY, BUT DO NOT NEED TO, CROSS OUT EACH POWER WITHHELD.          ____ (A)  Real property transactions , including home equity   loan transactions ;          ____ (B)  Tangible personal property transactions;          ____ (C)  Stock and bond transactions;          ____ (D)  Commodity and option transactions;          ____ (E)  Banking and other financial institution   transactions;          ____ (F)  Business operating transactions;          ____ (G)  Insurance and annuity transactions;          ____ (H)  Estate, trust, and other beneficiary transactions;          ____ (I)  Claims and litigation;          ____ (J)  Personal and family maintenance;          ____ (K)  Benefits from social security, Medicare, Medicaid,   or other governmental programs or civil or military service;          ____ (L)  Retirement plan transactions;          ____ (M)  Tax matters;          ____ (N)  Digital assets and the content of an electronic   communication;          ____ (O)  ALL OF THE POWERS LISTED IN (A) THROUGH (N). YOU DO   NOT HAVE TO INITIAL THE LINE IN FRONT OF ANY OTHER POWER IF YOU   INITIAL LINE (O).   SPECIAL INSTRUCTIONS:          Special instructions applicable to agent compensation   (initial in front of one of the following sentences to have it   apply; if no selection is made, each agent will be entitl [Text truncated for display. Full text available on Congress.gov.]